comments@captioncolorado.com >> pelley: tonight, what we've learned about a stunning lapse in security. a man flies across country with no ticket, no valid boarding pass, and no matching i.d. bob orr on the multiple failures of u.s. airport screening. did the c.i.a. go too far? david martin reports federal prosecutors have made a decision about whether the terrorist interrogation program was criminal. hackers tap the collection plate. armen keteyian with the surprising places computer thieves are stealing money. and our first look at former gangster whitey bulger on the day the judge makes an important decision. captioning sponsored by cbs this is the "cbs evening news" with scott pelley. >> pelley: good evening.

it wasn't one mistake but failure after failure that has the government plugging holes in u.s. airport security tonight. nearly ten years after 9/11, a a man of noornlgian dissent, olajide noibi, was still able to board a commercial jetliner with none of the commercial documents and no trouble at all. the story is infuriating if you've ever fumbled with luggage, a ticket, a boarding pass and an i.d. while waiting to get through that first checkpoint of the t.s.a. bob orr is in washington with late information. bob, what are you hearing? >> reporter: well, scott, as you said, this is a fundamental failure of the most basic u.s. aviation security policies. a man with no valid boarding pass, no valid ticket, was cleared through a checkpoint and took a cross-country flight. virgin america flight 415 had taken off from new york's kennedy airport and was already in the air heading for los angeles last friday when a flight attendant found something

strange on board. there was a man in 3e, a seat that was supposed to be empty. when asked for his papers, the man pulled out a day-old boarding pass issued for a different cross-country flight the previous day. and the name on the boarding pass did not match a university of michigan i.d. bearing his real name, olajide noibi. noibi, sources say, made no threats and was carrying no weapons, so the flight crew determined it was safe to fly on to l.a. as virgin flight 415-- call sign "redwood"-- approached l.a.x., the pilot gave controllers no hint of a problem. >> reporter: but upon landing the mystery passenger, noibi, was questioned by the f.b.i. noibi told the f.b.i. he was in l.a. to recruit people for his software business. he claimed he simply found the unused boarding pass and admitted not buying a ticket. agents then traced the boarding pass to its rightful owner and

confirmed he had lost the boarding pass on a new york subway and simply had printed another one at the airport kiosk. when the f.b.i. found no apparent connections to terror, noibi was turned loose, but only for four days. f.b.i. agents arrested him yesterday when they found noibi back at l.a.x. trying to board yet another flight, delta 46 to atlanta, again with a boarding pass that was not his own. and a search of his two bags turned up even more suspect documents-- at least ten more boarding passes in various names. noibi's now charged with being a stowaway on an aircraft. now, the t.s.a. says noibi was screened for explosives and weapons and in that sense presented no real threat or imminent threat to the plane. but it was a fundamental failure at the screening checkpoint-- he never should have got on with the papers he presented, scott. >> pelley: bob, you said in your story that he had a university of michigan i.d.? do you mean he got on a plane without a government-issued i.d. like a driver's license? how does that happen? >> reporter: it's unbelievable and it shouldn't happen.

i mean, it's just basic. the screener is supposed to take a look at those documents, match the name precisely-- first, middle, and last name-- against the boarding pass. in this case, the names would not have matched. the i.d. wasn't appropriate. he never should have been on the plane. the screener now will be retrained and could face disciplinary hearings, scott. >> pelley: thank you, bob. ow will be retrained and could face disciplinary hearings, scott. >> pelley: thank you, bob. there was important news today on another legacy of 9/11. the justice department has essentially pardoned the c.i.a.'s use of aggressive interrogation techniques. those techniques-- including waterboarding, which simulates drowning-- are outlawed now, but they were common in the years after 9/11. national security correspondent david martin has been working this story. david? >> reporter: scott, this is a major turning point in the long, contentious legal battle over the c.i.a.'s treatment of prisoners during the bush administration. attorney general eric holder released a statement saying nobody from the c.i.a. would be prosecuted for using the so-

called enhanced interrogation techniques approved by the justice department early in the war against terror. a federal prosecutor investigated the cases of 101 suspected terrorists allegedly held by the c.i.a. in secret prisons, including three senior al qaeda operatives who were subjected to waterboarding. holder said no charges would be brought because the c.i.a. interrogators were relying on legal opinions issued by the justice department, which argued that waterboarding and other stress-inducing techniques did not constitute torture. however, the same federal prosecutor recommended full criminal investigations into the deaths of two other prisoners while in c.i.a. custody. one, an iraqi named manadel al- jamadi, died in 2003 at the infamous abu ghraib prison. al-jamadi has come to be known as the iceman because his body was packed in ice in an apparent attempt to cover up his death. a suspected terrorist, al-jamadi was injured during his capture

by navy seals, but died in the custody of a c.i.a. interrogator who was under investigation by a federal grand jury. the second case involves a militant named gull rahman who was captured in 2002 in pakistan and held at a secret prison in afghanistan known as the salt pit. hosed down and left in an unheated cell overnight, rahman died of hypothermia. neither prisoner had been singled out for special interrogation. they both apparently died of simple misuse or neglect. >> pelley: david, what are you hearing about the c.i.a.'s reaction to this today? >> reporter: well, this happens to be c.i.a. director leon panetta's last day on the job before he takes over as secretary of defense. none of this happened on his watch, but he is clearly pleased by the decision. he issued a statement, saying "we are now finally about to close this chapter in our agency's history." >> pelley: thank you, david. leon panetta will be taking over tomorrow for robert gates. today, president obama surprised the outgoing defense secretary

with a going-away present: the medal of freedom, the nation's highest civilian award. gates was appointed by president george w. bush four and a half years ago and stayed on to help president obama manage the wars in iraq and afghanistan. we have done a number of stories here about hackers breaking into the computers of major banks and even governments. but turns out there is a little- known crime wave in this country, with cyber thieves reaching into thousands of places you wouldn't expect and carrying away a fortune. armen keteyian has been investigating. >> through him, with him, in him... >> reporter: at st. ambrose cathedral in des moines, iowa, midday holds special meaning. >> it's gone. and so you have to take a deep breath and you have to trust in the lord. >> reporter: what was gone-- all gone-- says bishop richard pates was more than $680,000 the diocese had just raised to help

the homeless and abused women, swiped in a covert attack by hackers. >> why would they do it at a particular time when we had the greatest amount of funds available? >> reporter: the iowa heist is part of the latest wave of cyber crime, account takeover fraud. in it, crime gangs-- many located in eastern europe-- target small towns, community banks and civic organizations which often lack high-tech defenses. earlier this month, the town of pittsford in upstate new york was taken for $139,000. in 2010, this public library in delray beach, florida, got hit for $160,000. a new jersey beach town lost $600,000. the heist begins with a technique known as spear phishing. in it, hackers lure an organization's financial officer with an e-mail, a note that appears to be from a friend or the i.r.s., enticing them to

click on a link. that click opens the door to a malicious software infection allowing vital information like bank passwords to be captured. criminal groups can then wipe out the account, ultimately transferring the cash to their own accounts in places like russia or the ukraine, leaving victims high and dry. >> you're seeing a lot of this type of crime get reported now. >> reporter: ron plesco is head of the national cyber forensics and training alliance in pittsburgh. together with the f.b.i. it tracks breaches in account security around the globe. >> no doubt in our minds, definitely organized crime, some of the most notorious russians, romanians and others. >> reporter: the f.b.i. currently has more than 420 active investigations into account takeover fraud, opening one to two new cases a week. >> paypal accounts. >> reporter: cyber crime is now a big industry. >> we have credit card numbers that can be sold here. >> reporter: f.b.i. agent keith mularski showed us how stolen bank accounts and credit card numbers are now sold on up to 40 black market sites, like this one in bulgaria, complete with

electronic shopping carts-- just like many internet sites. >> we went to the site and just registered a user name and put in a password and we got access to it. easy as that. >> to be a disciple of the lord... >> reporter: as for the diocese of des moines, its prayers were answered when the $680,000 was eventually covered by insurance and its bank. pittsford was not so fortunate; it's recovered less than $5,000. because while banks often reimburse individuals, groups like towns and churches find it far more difficult to collect. scott, the f.b.i. says hackers attempted to steal $230 million last year alone. >> pelley: armen, if you're a church or a small business, is there anything you can do to protect yourself? >> reporter: well, there is. the experts tell us the best thing you can do is have a single computer devoted only to online banking. that is your best defense. >> pelley: a computer not hooked up to your e-mail. >> reporter: not hooked up to your e-mail or separate from a

network. >> pelley: thank you, armen. senate republicans today sent president obama an invitation and a message: come visit us, but we won't raise taxes. the poor are facing a cut in benefits as a temporary increase in medicaid money runs out. and, as former fugitive whitey bulger returns to court, his apartment winds up on the most- wanted list-- when the "cbs evening news" continues. [ male announcer ] this is lisa, who tries to stay ahead of her class. morning starts with arthritis pain... that's two pills before the first bell. [ bell rings ] it's time for recess... and more pills. afternoon art starts and so does her knee pain, that's two more pills. almost done, but hang on... her doctor recommended aleve because it can relieve pain all day with just two pills. this is lisa... who switched to aleve and fewer pills

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ask your doctor if pradaxa can reduce your risk of a stroke. >> pelley: across britain today, more than 100,000 teachers and government workers went on a one-day strike to protest government budget cutting, including deep cuts in pensions. the streets of london were jammed for hours. most folks were peaceful, but 35 were arrested. the negotiations over the u.s. debt crisis have apparently descended to insults. yesterday, the president said his daughters work harder on their home work than the congress does on the budget. today, one republican senator suggested mr. obama needs medication. all of this as the nation careens toward defaulting on its debts in about four weeks. chip reid has the latest. >> reporter: republican leader mitch mcconnell today politely invited president obama to visit the senate. >> come on up to the capitol and

meet with senate republicans. >> reporter: kansas republican pat roberts was a little less polite. >> so maybe if he'd just take a valium and calm down and talk to us, it might be helpful. >> reporter: both senators said they want to explain to the president that there is no chance republicans will support tax increases as part of a deal on increasing the national debt, but white house press secretary jay carney said the president has no interest in talking about what will not pass. >> that's not a conversation worth having. what we need to have is a conversation about what will pass. >> reporter: despite republican resistance, democratic sources familiar with the negotiations say the president now wants more than $400 billion in tax increases as part of the deal. the biggest piece by far, $290 billion would come from limiting deductions for couples making more than $250,000 a year and individuals making more than $200,000, who the president referred to in yesterday's press conference as millionaires and billionaires.

the sources also say that while august 2 is the final deadline for passing a deal and avoiding an economic meltdown, it will take time to get it through congress. they say that means an agreement in principle needs to be reached by about july 22, just over three weeks away. senate democratic leader harry reid said today he's canceling next week's fourth of july recess to work on the debt deal, but, scott, sources on capitol hill tell me there's very little they can do until the president and republican leaders resolve their impasse over taxes. >> pelley: thanks, chip. there was no controversy in canada, however, on the first official visit there for britain's royal newlyweds. the duke and duchess of cambridge were welcomed by crowds in ottawa today. the couple will spend nine days touring canada before heading to southern california for three days. it will be kate middleton's first trip to the united states. medical bills are going up starting tomorrow for millions who can least afford it. that's coming up next. that's coming up next.

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the doctor leaned over and said to me, "you just beat the widow-maker." i was put on an aspirin, and it's part of my regimen now. [ male announcer ] be sure to talk to your doctor before you begin an aspirin regimen. go see your doctor now. >> pelley: medicare said today it will cover two expensive cancer treatments. one is avastin. an f.d.a. panel has recommended revoking its approval for treating women with breast cancer. studies show it didn't work

well, but some patients insist that it saved their lives. the other drug is provenge, a treatment that was found to extend the lives of men with advanced prostate cancer. each of these treatments will cost more than $90,000 a year. at the height of the recession, congress threw millions of americans a lifeline. it boosted federal funding for medicaid by $100 billion to pay for medical care for the down and out. but no one expected unemployment to be this high this long, and now the extra medicaid money runs out tonight. we asked bill whitaker to show us who depends on the emergency funds. >> hi. >> hi. >> reporter: we met sharon brown and her ten-year-old daughter rosa at the arroyo vista family health center, a nonprofit community clinic in los angeles where rosa came for strep throat. with a family income below the federal poverty line of $18,310 a year, rosa's treatment and

sharon's checkup cost just a dollar each... >> are you still taking the antibiotic? >> yeah. >> reporter: ...the rest paid by the joint state/federal low income medical program, medicaid. >> i depend on it a lot because i have three children. i use it for their yearly physical, for their eyes checked, for their dentist, for their shots to make sure they're all caught up for school. >> reporter: but with the temporary infusion of federal funds to medicaid running out, california is taking a $4.8 billion hit. so, like most states, california is scrambling to reduce costs, cutting services, cutting doctors' payments, raising patients' copays. $5 for office visits, $50 for emergency rooms, $100 to $200 a day for hospital stays-- you might think that's not much. >> but you know what? you're wrong. you're so wrong. because people do need it. people count on it. >> reporter: sharon lost her job as a cafeteria worker when l.a. schools made drastic staff cuts a year ago.

she's had no luck finding work since. her extended family lives on the edge of downtown and on the edge, financially. renting out the front of their modest house to pay the mortgage, they all live crammed here in the back. >> we have bills to pay, we have food to... for the children, their clothing. >> reporter: gasoline. >> gasoline, the light bill, the water bill, the gas bill. >> reporter: everything's going up. >> going up. >> reporter: sharon is one of 7,650,000 californians on medicaid. 42% of the patients here at the clinic rely on medicaid. c.e.o. lorraine estrada says with the cuts. >> our revenue will go down, which means potentially cutting services and layoff, which is unfortunate. >> reporter: pediatrician aanal desai worries about her patients. >> we're talking about cutting costs here. e.r. visit, hospitalizations are going to increase the cost.

>> reporter: california already is struggling with a budget crisis of its own and doesn't have the funds to make up for the federal cuts to medicaid. with unemployment here near 12%- - among the highest in the country-- the arroyo vista clinic and others like it don't expect to see any reduction in need. bill whitaker, cbs news, los angeles. >> pelley: another pro sport is having labor trouble. n.b.a. contract talks broke down today, and the owners are expected to lock out the players at midnight. that would put them on the sidelines along with n.f.l. players who were locked out in march. former mob boss whitey bulger was back in court today, crying poverty and asking taxpayers to pay for his lawyer. will they? that story is next. [ waves crashing ] ♪

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today, where tom donahue, the son of one of bulger's alleged victims, was waiting. >> 30 years of emotions about the man who killed my father, that doesn't go away in a week or a couple days. >> reporter: inside, bulger winked at his brothers then asked judge mark wolf to appoint a lawyer for him, claiming he doesn't have enough money to pay for his own. the judge granted the request, appointing prominent boston criminal defense attorney j.w. carney. >> it's a daunting task. >> reporter: red shea, a former key member of bulger's organization who did 12 years in prison for drug trafficking, says bulger's pulled a fast one, that he certainly has more money hidden than the more than $800,000 the f.b.i. says it found hidden in the walls of bulger's apartment in santa monica. >> one thing whitey always told me, he said, "whatever you do, never tell anybody where your money is, including me." >> reporter: so you have no

doubt he has enough money to pay for a lawyer. >> absolutely. >> reporter: that apartment bulger called home for more than a decade has become one of california's hottest properties, even as f.b.i. agents continue to go through it looking for evidence. the owner of west side rentals said his phone's been ringing off the hook. >> there's a lot of people coming in from out of town who want to know where o.j. lived or where exactly was the murder that happened. but this one's amazing to me because i think people think there's money in the walls. >> reporter: the next time we expect to see whitey bulger is next wednesday, right back here. that will be the first time bulger gets a chance to presumably say "not guilty" to y" counts of murder. jim axelrod, cbs news, boston. >> pelley: that's the "cbs evening news" for tonight. for all of us at cbs news all around the world, good night. captioning sponsored by cbs captioned by media access group at wgbh access.wgbh.org

lost your ride to work. your realtime captioner is linda marie macdonald. bad news for thousands of commuters. you just lost your ride to work. late details on the bay area transportation strike. it's a small change to a complicated equation. and a lot of bay area homeowners are freaking out over it. what the new math means for the value of your house. and california's new budget sparks a fight with amazon. why a lot of small businesses suddenly find themselves caught in the middle. good evening, i'm dana king. >> i'm allen martin. thousands of bay area commuters will have to find a different way to get to work tomorrow. late today, golden gate transit announced a one-day strike will shut down ferry service. linda yee with what's behind the strike and, of course, what it means for mm